Where To Turn for Your HOA Loan

Legal Checkup

Before your condominium or homeowner association decides to move forward with financing, they should contact legal counsel to help assess whether or not the association actually has borrowing authority.


The next step is to inform members of the intent to borrow funds. This is best achieved in a public forum. At this time, the board should provide a detailed loan proposal to its members. This document should contain the thought process around the decision to borrow, as well as the proposed terms of the loan and plan for repayment.

Professional Advice

When meeting with members about a condominium or homeowner association loan, the board should have an outside advisor present to impartially answer questions. To avoid potential issues down the road, members should formally vote to approve the loan. This is not just a best practice; it may be required in the condominium or HOA bylaws, especially if the loan repayment will necessitate an increase in dues.


It is a best practice to seek more than one loan proposal. Too often, boards focus solely on an interest rate without regard to loan structure and credit terms. Rarely are loan proposals identical so a careful review is always a good idea.

Arch Capital Solutions acts as an advocate for your HOA. We have relationships with lenders who specialize in HOA loans.

In many states, the board may actually have a fiduciary duty to make financial decisions that are in the best interest of their members. Arch Capital Solutions can satisfy those fiduciary duties acting as the HOA’s financial advisor. We help HOAs obtain financing and choose the best proposal from multiple lenders. Contact us at 1-239-304-6180 or [email protected]. Or visit us at www.archcapitalsolutions.com

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